I heard someone on a call-in radio show say, “Donald Trump’s business experience makes him far more qualified to get our country out of our financial difficulties than Obama.”
Trump financed the construction of his third casino, the $1 billion Taj Mahal, primarily with high-interest junk bonds.
Although he shored up his businesses with additional loans and postponed interest payments, by 1991 increasing debt brought Trump to business bankruptcy and the brink of personal bankruptcy.
Banks and bond holders had lost hundreds of millions of dollars, but opted to restructure his debt to avoid the risk of losing more money in court.
The Taj Mahal re-emerged from bankruptcy on
lowered interest rates on the debt and more time to pay it off.
By 1994, Trump had eliminated a large portion of his $900 million personal debt and reduced significantly his nearly $3.5 billion in business debt.
He was forced to relinquish the Trump Shuttle (which he had bought in 1989), but he managed to retain
Chase Manhattan Bank, which lent Trump the money to buy the
In 1995, he combined his casino holdings into the publicly held Trump Hotels & Casino Resorts. Wall Street drove its stock above $35 in 1996, but by 1998 it had fallen into single digits as the company remained profitless and struggled to pay just the interest on its nearly $2 billion in debt.
A number of his bondholders disagreed. In the same article, Meyer Marvald, a
Trump Hotels has been forced to seek voluntary bankruptcy protection. After the company applied for Chapter 11 Protection in November, 2004, Trump relinquished his CEO position but retained a role as Chairman of the Board. In May, 2005 the company re-emerged from bankruptcy as Trump Entertainment.
Trump’s ruthless dealings have ruined many lives. Anyone who thinks his business experience qualifies him to run our country would probably consider Sarah Palin an intellectual.